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Calculating Profit from Selling Capacity

The Chester company will sell 100 units (x1000) of capacity from their Cake product line. Each unit of capacity is worth $6 plus $4 per automation rating. The Chester company will sell the capacity for 35% off. How much do they receive when the capacity is sold?
Select:
$3,400,000
$2,210,000
$1,870,000
$1,190,000

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Automation rating = 7
The value of capacity =($6+7*$4)*100*1000*(1-35%) = $ 2,210,000.00

Answer: ...

Solution Summary

This solution shows how much a company would receive when capacity is sold.

$2.19